Looking for a Form 8288 Templates? Download it for free!

Section 1445(e)(5)

identifying number is an IRS individual

Specific Instructions

taxpayer identification number (ITIN). If

Transactions

the individual does not already have an

Amended return. Check the box at the

The transferee of a partnership interest

ITIN, he or she should complete Forms

top of the page to indicate the Form

must withhold 15% (10% for

8288 and 8288-A and mail the forms

8288 you are filing is an amended

dispositions before February 17, 2016)

along with any payment to the address

return.

of the amount realized on the

shown under

Where To File,

earlier. In a

disposition by a foreign partner of an

Complete Part I or Part II, but

separate package mail a completed

interest in a domestic or foreign

not both. Also, you must

Form W-7 with supporting

partnership in which at least 50% of the

complete and attach Copies A

documentation and a copy of Forms

CAUTION

value of the gross assets consists of

and B of Form(s) 8288-A. Attach

8288 and 8288-A to the IRS at the

U.S. real property interests and at least

additional sheets if you need more

address given in the Form W-7

90% of the value of the gross assets

space.

instructions.

consists of U.S. real property interests

Line 2. Enter the location and a

plus any cash or cash equivalents.

Part I, To Be Completed By The

description of the property, including

However, no withholding is required

Buyer or Other Transferee

any substantial improvements (for

under section 1445(e)(5) for

Required to Withhold Under

example, “12-unit apartment building”).

dispositions of interests in other

Section 1445(a)

In the case of interests in a corporation

partnerships, trusts, or estates until the

that constitute a U.S. real property

effective date of a Treasury Decision

Line 1. In Part I, enter the name,

interest, enter the class or type and

under section 897(g). No withholding is

address, and identifying number of the

amount of the interest (for example,

required if, no earlier than 30 days

buyer or other transferee responsible for

“10,000 shares Class A Preferred Stock

before the transfer, the transferee

withholding under section 1445(a). Do

XYZ Corporation”).

receives a statement signed by a

not enter the name, address, and

general partner under penalties of

Line 4. Enter the number of Forms

identifying number of a title company,

perjury that at least 50% of the value of

8288-A attached to Form 8288. Copies

mortgage company, etc. unless it

the gross assets of the partnership does

A and B of each Form 8288-A should be

happens to be the actual buyer or

not consist of U.S. real property

counted as one form.

transferee.

interests or that at least 90% of the

In Part II, enter the name, address,

Line 5a. Enter amounts subject to

value of the gross assets does not

and identifying number of the entity or

withholding at 15%. Generally, this is

consist of U.S. real property interests

fiduciary responsible for withholding

the rate of withholding for transactions

plus cash or cash equivalents. The

under section 1445(e). Do not enter the

required to be reported under section

transferee may rely on the statement

name, address, and identifying number

1445(a) in Part I.

unless the transferee knows it is false or

of a title company, mortgage company,

the transferee receives a false

Include withholding for the purchase

etc. unless it happens to be the actual

statement notice pursuant to

of a residence with an amount realized

entity responsible for withholding under

Regulations section 1.1445-4.

of more than $1,000,000.

section 1445(e).

Section 1445(e)(6)

Line 5b. Enter amounts subject to

The IRS will contact the person

withholding at 10%. Amounts entered

Transactions

or entity listed on line 1 to

on line 5b, include the following.

A qualified investment entity must

resolve any problems that may

Withholding for the purchase of a

CAUTION

withhold 35% of a distribution to a

arise concerning underwithholding

residence with an amount realized of

nonresident alien or a foreign

and/or penalties.

more than $300,000, but less than or

corporation that is treated as gain

equal to $1,000,000. Generally, no

realized from the sale or exchange of a

Name and address. If you are a

withholding is required for the purchase

U.S. real property interest. No

fiduciary, list your name and the name

of a residence if the amount realized is

withholding under section 1445 is

of the trust or estate. Enter the home

$300,000 or less. For more information,

required on a distribution to a

address of an individual or the office

see Exceptions, earlier.

nonresident alien or foreign corporation

address of an entity.

Any dispositions of property prior to

if the distribution is on stock regularly

February 17, 2016, subject to a 10%

Identifying number. For a U.S.

traded on a securities market in the

rate of withholding under section

individual, the identifying number is a

United States and the alien or

1445(a).

social security number (SSN). For any

corporation did not own more than 10%

entity other than an individual (for

Line 5c. If withholding is at a reduced

(for distributions before December 17,

example, corporation, qualified

rate check the box. See Exceptions,

2015, did not own more than 5% of such

investment entity, estate, or trust), the

earlier. Include the amount withheld in

stock in case of a REIT) of that stock at

identifying number is an employer

the total reported on line 6, Part I.

any time during the 1-year period

identification number (EIN). If you do not

ending on the date of distribution.

Example 1. B, a corporation,

have an EIN, you can apply for one

purchases a U.S. real property interest

A distribution made after December

online at

from F, a foreign person. On settlement

17, 2015, by a REIT generally is not

businesses-self-employed/apply-for-an-

day, the settlement agent pays off

treated as gain from the sale or

employer-identification-number-ein-

existing loans, withholds 15% of the

exchange of a U.S. real property

online

or by telephone at

amount realized on the sale, and

interest if the shareholder is a qualified

1-800-829-4933. Also, you can file Form

disburses the remaining amount to F. B,

shareholder (as described in section

SS-4 by fax or mail.

not the agent, must complete Part I of

897(k)(3)).

For a nonresident alien individual

Form 8288 and Form 8288-A.

who is not eligible for an SSN, the

-6-

Instructions for Form 8288 (Rev. 2-2017)

Instructions For Form 8288 - U.s. Withholding Tax Return For Dispositions By Foreign Persons Of U.s. Real Property Interests Page 6

Related Articles

Related forms

Related Categories